FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

PROSPECTUS OF FRANKLIN TEMPLETON INVESTMENT FUNDS
Requests for exchange of Shares on any Valuation Day from a Fund or a Class of Shares denominated in
one currency into a Fund or a Class of Shares denominated in another currency will require one (1) additional
Luxembourg bank business day in order to effect the currency conversions for such exchange. However,
in exceptional circumstances, the Company or the Transfer Agent may, at its own discretion, decide to
process such a request for exchange and the necessary currency conversions on the same Valuation Date.
The number of Shares issued upon exchange will be based upon the respective net asset value of the Shares of
the two relevant Funds or Class of Shares on the Valuation Day on which the exchange request is effected
and will be calculated as follows:
A = [B x (C - D - E)] x F
G
where
A = the number of Shares in the new Fund or Class of Shares to which the Shareholder shall become
entitled;
B = the number of Shares in the original Fund or Class of Shares which the Shareholder has requested
to be exchanged;
C = net asset value per Share of the original Fund or Class of Shares;
D = calculated amount of exchange charge (if any) payable per Share;
E = if applicable, EU withholding tax deducted from the net asset value per Share of the original Fund;
F = the relevant currency exchange rate (defined as the currency exchange factor determined by the
Board of Directors for the relevant Valuation Day, as representing the effective rate of exchange
between the two relevant currencies) after adjusting such rate to reflect the effective costs of
making the transfer, when the original Fund or Class of Shares and the new Fund or Class of
Shares are not designated in the same currency and, in any other case, 1;
G =
net asset value per Share of the new Fund or Class of Shares.
In certain limited circumstances, for distribution in certain countries and/or through certain sub- distributors
and/or professional investors, the Board of Directors may, at its own discretion, authorise an exchange
charge which calculated amount shall not exceed 1.00% of the value of the Shares being requested for
exchange. In such case, any local supplement to this Prospectus or marketing material, including that
used by the relevant intermediaries, will refer to the possibility and terms of such exchange charge. It is at
present intended that the exchange charge will be paid to the Principal Distributor (who may, in turn, pay
a portion thereof to the sub- distributors, intermediaries, dealers and/or professional investors receiving
the order for exchange) after deducting the total transaction expense payable to the Transfer Agent. Such
charge shall be automatically deducted when the number of Shares is calculated and paid by the Company.
Exchanges may not, however, be effected if the result thereof would be that the Shareholder would be
registered as holding less than USD 2,500 (or the equivalent in the currency of denomination of the Fund)
in value of Shares of the original Fund(s) and also of the Fund(s) into which his Shares are to be exchanged.
Any request to exchange Shares may not be executed until any previous transaction involving the Shares
to be exchanged has been completed and full settlement on those Shares received.
In addition to the exchange charge described above, in certain circumstances an exchange from any one
Fund will necessitate a fee equivalent to the difference between the two levels of charges unless the
Shareholder can document that as a result of prior exchanges, he had already paid the exchange rate
differential. It is currently anticipated that any exchange rate differential will be paid to the Principal
Distributor, who may, in turn, pay a portion of each differential to sub- distributors, intermediaries,
dealers and/or professional investor. However, the exchange rate differential may be waived at the
discretion of the Company.
54 Franklin Templeton Investment Funds